"Just hanging on for the miracle."
I don't see it as a miracle to go up. I see a company that was losing money for years and years. Then, they showed a profit. Okay, that is good. But let's see them do it again. Then they showed another profit. And another. And then they had a crop actually harvested, revenue that came in, and another profit. Four in a row. After that they started to plant more. They went from one acre, where they made a profit, to three acres. This year they are harvesting 3 acres, and this year they are doing it twice. The profits you ask for? Well, they went up get again in the latest quarter, and now they are going to harvest 3 acres in October and have even more revenue come in and more profits should come as well.
So the company is doing all the right things as to making profits. Higher profits and continued profits over six quarters and more acreage now than EVER before should lead to more revenue and more profits. All good. And the stock? It fell. It went down. A lot. Sometimes that happens. When a company is doing well but not exposing themselves as doing well, the stock can fall. So it fell. To me, that is not a bad thing, as I buy when it is DOWN. I'll admit my averages here. I owned this stock years ago, when they were doing some things in Coachella. However, the COMPANY was not doing well, so I sold. Yes, fortunately at a profit. Then, I went away. For YEARS I did not own this stock. Coachella also went away, and the company was not worth my time nor looking at. Then they started their 1 acre of planting and their Estrella location. I started watching again. Then the profits aforementioned came in, and that hit my radar. I bought some higher. But when it then went DOWN as the profits went UP, again I did not consider that a bad thing. I considered it an opportunity. I bought more. I bought most of my shares between $.0044 and$.0040. Average? About $.00413. And yes, I may buy some more if it stays in the 3's. I'm not right now only because the market itself is down and other opportunities are out there I am playing. Not penny stocks, but big board ones, where 93% of my portfolio is. When I feel I wish to put more into pennies, if it is in the 3s, or even low 4's, I probably will add again. Because the stock price is lower than the company value, IMHO. Look - if they went from 3 acres to 1 acre and profits were shrinking, I'd sell what I have, even at a loss. If the COMPANY is doing poorly, then the stock price will follow, right?
SO if the COMPANY is doing BETTER, then the stock price should STILL follow. Maybe not immediately, but it should follow, and most of the time DOES.
Crops are UP from 1 acre to 3 acres, not down. Profits are UP over the last two years, from losses to consistent gains. Revenue is UP. And due to poor marketing the stock is DOWN. Opportunity, IMHO. I don't think it will take a "miracle" to go up. Show the profits over the next two quarters from the sale of the October crop (not in the earnings coming out soon. In the current quarter and next one) which is not a dream or a hope but a reality and already ready to harvest, and the profits being larger over the coming quarters "should" be enough to finally see the STOCK go up as well as the company. Granted, not all will happen exactly as I hope it will. But I have faith that soon this stock will recover, based on growing profits. And if that opinion changes, I'll sell and move on. Again. Hopefully at another profit, but if I feel it is not going to do well, I shall sell no matter whether at a gain or a lose and move on. As long as I think the stock is trading less than the company value, I'll buy, When it goes up and is trading above the company value, or if the company value goes down, I sell. I hold most of my penny stocks a few quarters at most, and some a little longer. I probably won't be here a year from now, either way. Either the stock goes up to meet the company value and I sell at a gain, or the company value comes down and I sell at a loss. have done both, and fortunately more gains than losses (In spite of a liar saying otherwise to harass me) Enough of my thoughts on this. Back to the sidelines. I focus on the big board stocks, and too much spent on this little one for now, so I'll watch, wait, and post from time to time.
I end wIth one question for you. Please answer if you can. "What is the current AND forward P/E on this stock, and how does that compare to the industry?" research that, tell the board your answer, and then tell me what that tells you about the stock price for the future. TIA.
